president obama's economic stimulus program, our stimulus desk is working long hours, poring over reports on tens of thousands of projects, and we found pork. only it's not an earmark this time, it's from a can and helping to feed those less fortunate. our top story, president obama is preparing to deliver his first state of the union address. it's tomorrow night and he's hoping it can change the course of the country and perhaps his presidency. he's asking congress to approve a three-year freeze on discretionary federal spending. one republican compared that to going on a diet after winning a pie eating contest. he'll be trying to convince middle class america that he really does feel their pain. suzanne malveaux joins us at the white house. when we talk about a freeze on discretionary spending, explain what part of the government we're talking about in the government. >> reporter: it's interesting the pie eating contest and diet analogy there. the obama administration says

it's a freeze on discretionary spending for three years, that does not include the department of homeland security or veterans affairs, they're hoping to save $250 billion in that time period. kiran, this is a very controversial proposal. we heard from the former labor secretary under president clinton that says this is the wrong thing to do, that the government should be spending in the short term to stimulate the economy when nobody else is. there are some republicans who say this doesn't go far enough. there's some liberal left who are saying this is going to cut into valuable programs. so clearly the one thing that this is going to do is that it's going to move this white house closer to the right. that is those fiscally-conservative democrats, independents, even some republicans, and that is exactly what the administration and what this president wants to do. if they want to get anything done legislatively they have got to have bipartisan support. we heard the president last night admitting that that was part of the reason why, the main

reason why health care reform did n did not get passed. here's the president talking to diane sawer. >> we had to make so many decisions quickly in a very difficult set of circumstances. that, after a while, we started worrying more about getting the policy right than getting the process right. >> reporter: so, kiran, he's talking about -- more about getting the final product done than actually how to get this legislation passed, just trying to ram it through and essentially that that was a mistake on the administration's part, they're going to try to do better. he's also going to be focusing more seriously on how to help the middle class. we'll here more about that in the state of the union address. >> and obviously another big agenda item is health care. it's in limbo right now, but what is the president's plan moving forward? >> reporter: there are very specific things he wants to do, once again addressing the middle class, essentially helping them out. but first and foremost, a child

care tax credit would be part of the plan. limits on federal student loan payments, another bid, about 10% or so, limiting 10%. new ira requirements, and also additional funds to help care for elderly relatives. these are just some of the things he's going to be promoting in the state of the union address and trying once again to get bipartisan support for the health care reform. kiran? >> suzanne malveaux this morning for us, thanks so much. in 20 minutes we'll look at where you're stimulus doctors are going with christine romans. she's uncovered one project helping families put food on the table. two weeks ago today haiti was devastated by a 7.0 earthquake and dozens of aftershocks. this morning we're seeing new evidence of what happened just moments after the earthquake hit. this amateur video shows the panic in port-au-prince. watch.

people running and screaming in the street, dazed and terrified. many thousands as we know at this moment dead or either dying. the air is thick with dust from the concrete rubble. one man is heard on the tape saying, this is chaos in haiti. everything in haiti it seems is broken, and that includes the seat of government. when the presidential palace crumbled, officials basically lost their base and entire infrastructure. >> many confidential documents are now buried under the rubble. gary tuchman looks at the challenges of rebuilding the broken government. >> reporter: of all the damage in the nation of haiti, this is in many ways the most striking, the presidential palace. in a country that's been a challenge to govern in the best of times, that challenge is now harder. now the president of haiti has to work out of this rundown police station, trying to govern the country.

it's made worse because the leaders have nowhere better to work. imagine if the white house in washington were destroyed in an earthquake. the horrors of that are exactly what the haitian people are going through. the physical and symbolic devastation is very raw. this area has been the site of haitian leaders since the 1700s. but this palace wasn't built until the early 1900s. construction began in 1914 but it's been destroyed before. the site was burned down in 1915 by mobs who assassinated the president. it's been the home of many skoun drals. the current president is rene preval. he wasn't here when the earthquake happened. but it's unknown how many people died inside. to make things even worse the parliament building was also destroyed. and the equivalent of the u.s. supreme court, the palace of justice, also flattened. >> it's a catastrophe. but we are working with the help

of the international community to rebuild the country. >> reporter: in addition, pass is home to classified information too dangerous to look for right now. the equivalent of the chief of staff. is there concern for the confidential information in the pala palace? >> we're working on it. >> reporter: the secretary general says he was away in the moments after the collapse. it was impossible for him to get there and remarkably he had no word on devastation at the palace. >> i saw on cnn the picture, i was shocked. >> reporter: the president hopes to leave the police station and run out of this less damaged security building on the palace grounds. the government knows its own future is in peril if it doesn't help its citizens first. gary tuchman, cnn, port-au-prince, haiti. coming up at the bottom of the hour, we'll talk with dr. mark hyman where he worked under extreme conditions to save

lives. the brother of nancy kerrigan has now been charged with assaulting their 70-year-old father. daniel kerrigan died over the weekend at the family's massachusetts home. prosecutors say his son, mark, grabbed him by the throat during an argument about using the phone. he pleaded not guilty yesterday. her husband says he died of a massive heart attack. authorities are still investigating. no texting for big rigs, ray lahood is issuing new federal guidelines today. commercial truck and bus drivers who text while driving could face civil or criminal penalties and fines of $7500. he says it's an important step in reducing the danger from distracted drivers. a winter storm is moving across the midwest, bringing with it high winds and bitter cold. blowing snow creating whiteout conditions in the dakotas, iowa, nebraska, minnesota.

ice buildup on power lines, proving to be a problem in some areas. what's it going to be like today? rob marciano has a check -- he's not at the weather center in atlanta. where are you? >> he's in steamboat springs? >> reporter: why not? the 21st annual weather summit out here for this conference that i attend every year, a great group of meteorologists convene with some of the top scientists to discuss many issues involving weather and climate. we'll talk more about that in about 30 minutes. first off, let's talk about the storm that's moving across the northeast. heavy rainfall, still flood warnings for parts of northern new england. the rainfall is beginning to taper off. it is cold air, you do see the snow turning from rain to snow there across parts of the midwest and the ohio river valley. snow in the intermountain west. avalanche warnings are up for the sierra and wasatch. so too much of a good thing

certainly for the high country and more rain for southern california, which could cause problems later on today. breeze and we could see an atlantic storm later. also jacqui jeras is working on this, she's at the cnn weather center in atlanta. it's 5, 6, 7 degrees in steamboat, but -- >> that's a nice doingle there. is that a boon doggle? >> that's what some would say. >> thanks, rob. what afghanistan's president said would be the most effective way to end the fighting.

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12 minutes after the hour now, and a quick check of stories new this morning. awe suicide car bomber in baghdad has killed at least 18 people and injured at least 80. iraqi officials say he drove there a check point before a blast went off near a government building. it's the second attack in two days. yesterday three vehicles exploded at hotels in central baghdad, killing at least 36 people. meanwhile in afghanistan, could talking to the enemy actually bring peace? afghan president hamid karzai says that the u.s. and europe are warming up to the idea of talking with taliban fighters. the goal? convincing them to stop fighting and to rejoin afghan society. for more on this, let's bring in atia abawi, this has critics and

p proponents. what's the latest? >> reporter: absolutely. this isn't anything new when it comes to the afghan government. president karzai himself has been pushing for it for the last several years. he has a reconciliation department where they've been reaching out to various members of the taliban and different insurgency groups throughout the country. i actually spoke to two former taliban fighters and government officials during the taliban regime, and they say the reason that they're coming to the side of the afghan government is because they want the fighting to stop. they want peace in afghanistan. but we also have to look back altogether last monday, the attacks that we saw here in the capital city, it was just going on for hours on end. gunfire, explosions, that was caused by the taliban. and their message to us was the mere fact they had this attack was to make sure the afghan government and international community know they are not willing to negotiate and they can't be bought. although this has been going on, reaching out to the taliban, it is something fairly new when it comes to the international community, and we do expect more

talks about this at the january 28th conference in london where they're going to meet with over 60 leaders from different nations all over the world and paving a way forward in afghanistan. >> but if all these nations are on board and the taliban isn't, where do you go from there? how do you make any progress? >> reporter: well that's -- that is a main question that's going on at the moment. this isn't the taliban of ten years ago, this isn't just one group with one leader, these are various groups throughout the country and even across the border in pakistan, with various different leaders and ideologies. the international community as well as president karzai, they know they can reach out to certain taliban, but there are others that just won't give up. as we saw with that spokesperson who told us that they can't be bought, there are very strong ideologies with some taliban groups, and they say that they will fight until the end. >> atia abawi with the latest. thank you. coming up, day two, a closer

look at the federal stimulus plan. christine romans found a lot of pork in the stimulus bill. we'll explain coming up. and all your little mile-pebbles ameriprise financial can help. we have over ten-thousand advisors ready to listen to your dreams and help you plan for them. because the first step towards reaching what you want is reaching the person who can help you get there. our advisors. your dreams. more within reach. meet us at ameriprise.com. [ crowd gasps ]

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welcome back to "american morning," it's 18 minutes past the hour. we're in the midst of a week long undertaking here at cnn to find out where all the stimulus money is going. there's a new poll showing most of you think it really isn't doing much of anything. this poll basically asked if the stimulus has made you better off than you were a year ago. only 7% of people said it actually improved their own financial situation. close to half of the people said it had no effect at all, and a fifth of them said that the stimulus made things worse. >> here at cnn we wanted to see for ourselves where your tax dollars are going. christine romans joins us now. you found one pork project that unlike most other pork out of washington might not stick in our craw? >> reporter: this is literally canned pork going on at the table of americans. we know the stimulus is going to fixing roads, saving teacher

jobs, but it's also helping to put food on the plates of struggling americans. in fact, the biggest single food project is $19.6 billion for food stamps over the next five years. think of that. 38 million people right now are being fed with food stamps. that's a record high. more than one in ten americans are getting food stamps right now. the next biggest, $100 million to update school lunch equipment, so that is your child quite probably getting some indirect benefit from stimulus money in the school lunch room or cafeteria. and finally, $100 million for food banks. some of the biggest names in the food industry got big cash contracts to stock food banks across the country. so we followed that money, your money, from the treasury to the plates of struggling americans. >> thank you so much. >> reporter: robert never thought he'd carry home groceries in a box from the food pantry.

this single father of two from north carolina lost his job as a carpenter more than a year ago. now like 18 million unemploiped americans, he struggles to make ends meet. >> i'm the one that's usually donating around thanksgiving time and christmas time, and now here i am, i'm needing that. and it was just surreal. >> reporter: his dinners are paid for in part with $100 million of stimulus money. awarded by the government to food companies you've heard of, like del monte, jennie-o and tyson. but the biggest influx of cash went to little known lakeside foods, one of wisconsin's largest companies. it received more than $21 million to make, among other things, canned pork. lakeside declined to talk to cnn. so we went to their factory in plainview, minnesota, to find out how employees feel about the lucrative contract. >> it's great. it helps the company out a lot.

>> i heard they received some money but i didn't have an idea of how much it was. >> reporter: it was enough, according to our government sources, to create 52 new jobs. overall, the department of agriculture tells cnn the entire $100 million for food companies created 195 jobs. for kitty head of the food bank in asheville, north carolina, her priority is feeding people. >> it is not a waste of taxpayer money. it has helped us provide for the most basic needs for people who are truly in need. >> reporter: her food bank gladly took that canned pork. where demand is up 40%. so did thousands of other food banks across the country. but is this stimulus? >> this is clearly a type of well welfare, it's a welfare expansion. >> robert wechter with the heritage foundation approves of using federal money for food banks. but he argues the entire

stimulus bill merely expands welfare. >> it does help support people who have lost their jobs and that's a good thing, but it's not going to put more jobs back into the economy. >> reporter: steven kyle, a professor of economics at cornell university disagrees, saying there's also a ripple effect. >> sure it's stimulating the economy. that food is produced here in the united states. that stimulates the u.s. economy. those farmers then end up with more money and they turn around and buy more equipment, hire more laborers, maybe they buy themselves a new caterpillar tractor. who knows? >> reporter: as for robert, the stimulus bill may not have given him a job, but it did keep him and his daughters, samantha and alison, from going hungry. >> my kids have to eat. we all have to eat. >> reporter: and that's exactly what it was meant to do. $100 million of stimulus dollars for food companies helped, according to the government, create 195 jobs, that's according to the department of agriculture. and a great update from robert. after 13 months of looking for

work, he got a new job. he, as we said is a carpenter, he'll be working building log cabins. so we hope that's a sign that other people after a long drought are starting to find some work. >> you tried to talk to the food companies? >> reporter: they did not want to talk to us, and i can't even tell you why. they wouldn't even give us reasons why. they just all said -- these are household names. they said we're not going to talk about contracts for the food. employees, though, said we heard there were some contracts, but they said they'd been working on these contracts. many of these things were done in the summer and fall quickly to get the money into the food banks. >> still a being shog number, one in ten families are -- >> at least. yeah. 38 million americans on food stamps. that's right. >> christine, thanks so much. tomorrow on "american morning," can a $5.5 million resort town restoration project be a good use of stimulus money? find out why one woman is grateful that the government is spending that cash. also coming up at 8:00, is the stimulus working for average

americans? an exclusive interview with a man the president picked to oversee the stimulus. >> and later at 10:00, ""ac 3 " 360"" investigates on why it's being wasted on unnecessary road signs. "the stimulus project" all this week on cnn. he's best known for movie block busters, now he wants to use his talents to help the people of haiti. alina cho had a chance to sit down with him, we'll hear what he has to say about it. would you like a pony ? yeah ! ( cluck, cluck, cluck ) oh, wowww ! that's fun ! you didn't say i could have a real one. well, you didn't ask. even kids know when it's wrong to hold out on somebody. why don't banks ? we're ally, a new bank that alerts you when your money could be working harder and earning more. it's just the right thing to do.

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[ male announcer ] introducing the all-new lexus gx. ♪ it has the agility to avoid the unexpected... ♪ ...the power to take on any mission, and the space to accommodate precious cargo, because every great action hero needs a vehicle. ♪ welcome back to the most news in the morning. time for an "a.m. original squl, something you'll see only on cnn. two weeks after the devastating

earthquake in haiti, the scenes are especially hard for one hollywood filmmaker. >> the spirit and people of haiti have been jonathan demi's driving passion for more than 20 years. alina cho is here with an "a.m. original." people night not know of his deep connection to haiti. >> reporter: for more than two decades, jonathan demi is best known for blockbusters like "silence of the lambs" and "philadelphia," he has been to the country several times and two weeks after the quake demi tells me he is still stunned. jonathan demme has had a love affair with haiti for more than 20 years. he wanted to help. >> i've got my shots, get on a plane, go down, what am i going to do? >> reporter: the academy-award winning director's passion for

haiti came first through art, walking by a gallery in the mid1980s. >> i was overwhelmed with the creativity of the paintings, the excitement, and i thought, haiti. this is interesting. i bought a painting. >> reporter: that led him on a trip to haiti to find more paintings. what he discovered was a country full of people as vibrant as their art. it was 1986. ♪ >> it was an extraordinary moment in haitian history, because the dictator for life, had been overthrown by a popular revolt. and i was so excited about the -- about this kind of this fervor for democracy. >> reporter: so demme made two documentaries on haiti for the rest of the world to see what he saw as the haitian spirit. including the agron mist, a story about haiti's most famous journalist. founder of radio haiti international.

[speaking in a foreign language] >> reporter: jean dominique, a man who fought and gave his life in the pursuit of democracy. >> risky business, because every information, even about the garbage in the street, was seen by the power as opposition. >> and he was brilliant at the microphone. and i thought, well, i can see why this guy is so popular, and in fact i would love to cast him in a movie. >> i am sure now, that things will be better. >> reporter: while demme reels at scenes of sheer devastation from haiti, you also sees what he says is their true character. ♪ >> the resiliency of the haitian people are going to keep them going, going to keep the country going, and i still absurdly have this great belief that it's just not over for the haitians. >> reporter: even in the midst

of this tragedy, every night on the streets people are singing. >> yeah. >> reporter: were you surprised by that? >> i wasn't -- there's a moment of my god, they're singing, and the next thing is, of course they're singing. that's again the haitian spirit. that's the beauty, the creativity, the spirituality, the depth of the haitian spirit. >> reporter: yes, it is. jonathan demme says he plans to go back within the next six months to a year. his hope is to do another documentary on haiti, this time on how the haitian people are recovering and rebuilding offer the earthquake. the one thing he can do as a filmmaker is bear witness and give a voice to people who don't normally have one. >> alina, thanks so much. time for this morning's top stories, president obama telling abc news that fed chairman ben bernanke has done a good job and has his strongest support. the president defended his pick amid concerns over whether bernanke has enough senate

support to be confirmed to a second term. bernanke supported the $787 billion stimulus last year, and in just a few moments we'll check in with our t.j. holmes. he's at the stimulus desk in atlanta this morning to find out whether your tax dollars are helping americans get jobs. thousands of veteran who's have been diagnosed with post-traumatic stress disorder could soon get larger disability checks. the decision comes after a class action lawsuit claims that thousands of veterans were improperly denied benefits. under the law, if a veteran is diagnosed with ptsd and discharged, the government must consider them at least 50% disabled and give them disability payments accordingly. al qaeda's leadership is patiently working to acquire weapons of mass destruction that could inflict widespread damage to the united states. that is the conclusion of a new report written by a former cia official. he says the organization's top priority is to bring economic ruin to america. despite a massive response

to help earthquake victims in haiti, it is still not enough, and there still needs to be much more help to the people there. our next guest says the situation has gone from, quote, pure catastrophe to simple chaos. dr. mark hyman returned from haiti. he's a volunteer for partners in health. great to talk to you this morning. you're in massachusetts now, back from haiti, but we talked to you thursday morning and you described a very difficult situation on the ground where you had few supplies, you were overwhelmed with patients, and they be you talked about things turning around a bit. tell us what the rest of your time in haiti was like? >> it was really extraordinary to see the coming together of organizations and infrastruct e infrastructure. within one week we had a hospital completely shut down to gathering together volunteers, partners in health to build nine ors, to get food, water, electric tresty all up and running within a week, which is a miracle.

but it's really the tip of the iceberg. there are so many out there in the communities, in the tent cities, who haven't made it to the hospital, who are dying of gangrene, who are getting tetanus, two weeks out, and we're seeing the consequences of lack of care and lack of coordination out there. the hospitals are all full, they're overflowing. there's nowhere to go because there's no homes anymore. their homes are piles of dust and rust and they have no food, no water, no sanitation where they're going. if they go back with dirty wounds to live in tent cities, they're basically at risk for death. >> stinging op-eds out in particular about this situation, a few of the doctors that went there, most specifically this new york presbyterian hospital group of trauma surgeons went with all of their equipment, everything. they talk about the delays being able to get on the ground, getting rerouted through the dominican republic and once

there they said the infrastructure was nonexistent. finally after treating some of these patients they came back to check on them to find many of them had sepsis because of the insanitary conditions there, and what they really called the travesty was no prioritization at the airport in terms of who needed to get where and why. one of the op-eds went as far as to call this obama's katrina. what do you say about all the criticism being leveled at the coordination efforts in haiti? >> i'm not sure it's president obama's fault, i think there was a lack of haitian infrastructure to start with. this was a catastrophe upon a disaster pun upon a catastrophe. we saw the lack of infrastructure in the first place. the transportation was not there, the fuel was not there, the coordination was not there and this was a disaster of unimaginable proportions, people were doing their best. i saw steady progress day after day after day, coordination with the government, coordination,

improvement, moment by moment, hour by hour. there's movement and progress. but the real concern is in the long run what's going to happen to these patients and the family who's have severe injuries who are have trauma, who aren't able to get the care, who need pros teat is, rehab, treatment for post-traumatic stress disorder, how are we going to deal with patients flooding out of port-au-prince who aren't able to get the care they need because there's a lack of infrastructure for the supply of food, water and medical supplies in these surrounding communities which are bearing the burden of people migrating out of the cities. i really want the world's focus to stay on haiti, stay on helping them rebuild their country and rebuild the medical care system, which is really broken down there. i met a medical student there who was at the general hospital, which is the main educational hospital for haiti, and he asked president clinton who was there to help him, continue his education. i got an e-mail from him begging for me to help him continue his

education so he can go back to haiti. he had no family anymore, everybody was dead, they were trying to come together and pull this together but it was very, very difficult. >> it's proving to be difficult. another op-ed written by a trauma surgeon who also went, they said there was just not the basic coordination and support taking place. one thing they talked about was these warehouse size quantities of unused medicine and food at the airport and also he said hundreds of international and u.s. soldiers sort of standing around aimlessly while the roads needed to be cleared and coordination needed to take place. have you seen that change on the ground? >> absolutely. i worked with general keen and the 82nd airborne, in a day or two they restored order. there was no violence, just chaotic. they began moving patients off to the quss comfort." we had tremendous support and

there's just a basic lack of transportation, of trucks, of fuel, of just logistics, and it's communications -- basic communications were very difficult. the cell towers were down, there was radio communication that was difficult. occasional text and e-mails which was difficult. >> these are challenges that lie ahead for months, if not years ahead, and hopefully the focus will stay on improving life for so many survivors. thanks so much for joining us this morning. >> thank you. still ahead, we continue our stimulus project. it's day two and our t.j. homes is on the stimulus desk in atlanta digging deeper into where your money's going. good morning, t.j. >> reporter: good morning, guys. digging deep, there's binders upon bindsers of thousands upon thousands of project we're looking into to see if your stimulus money is being used for what they said it was going to be used for. coming up, we're looking into 58,000 projects, but why is one state in particular getting about 20% of those stimulus

projects? is that fair? we'll explain. let's get chinese should we order panda blossom, panda moon... how about chinese at home with new wanchai ferry? you can make it in just 14 minutes mmmh, orange chicken. great. i didn't feel like going out anyway (announcer) wanchai ferry. restaurant quality chinese in your grocer's freezer

welcome back to the most news in the morning. 40 minutes past the hour.

all this week, cnn is looking at the $787 billion stimulus plan. we're trying to track as much of it as we can so that you know where your tax dollars have gone or where they're going. t.j. holmes joins me live. is he the at stimulus desk in atlanta, surrounded by binders, right? i'm sure you've been doing a lot of heavy reading as you find out where this money is going. >> reporter: well, it's interesting reading, quite frankly. but yes, these binders represent 58,000 projects that are going on around the country with this stimulus bill. if you'll notice here, you see these binders, all these tabs you're seeing, you know, kansas, massachusetts, louisiana, kentucky, another binder here says maryland through minnesota. another one says missouri through new hampshire. but if you look at this binder here, i've got one here that simply says california. california gets its own binder. the reason it does is because california almost has its own stimulus bill, if you will. it's getting about 20% of all

the stimulus projects. some 58,000 we're keeping up with, 12,000 are going to the state of california. some people might scratch your head, why is that, why do they get so many? well it is the post populace state, so it makes sense. let's go to the map. we are keeping up. this map as i told you yesterday when we stifirst started this ss all the investigations we have going on. the green dots are ones we've gotten calls back and answers to some of the questions with he had about them. so let's talk about california again. they're getting most of the projects, in particular, you'd guess the biggest city in the biggest state, los angeles, is getting the majority of the projects, $4.2 billion worth of stimulus for about 1600 projects. so this gives you an idea. we're going to be looking more in depth at some of the projects in los angeles.

it is the most populace state by far, los angeles the biggest city. that's how it breaks down. we're giving you an example, teeing it up for you this morning, kiran. we're certainly going to be looking more in depth at these projects and find out where the $787 billion is and also where all these jobs are. >> i love your magic wall, you don't even have to touch it. you just wave your hands around it and it moves for you. how about that one? >> reporter: i'm the magic man. >> i guess you are. >> reporter: some people have the magic wall. all right. kiran? >> thanks so much. john? millions of federal stimulus dollars are going to community health centers to help the insured and underinsured to get the health care they can't afford. in los angeles, thelma gutierrez visited one where the money is making a difference. >> reporter: this is st. john's community clinic. the doors haven't even opened yet. already you can see dozens of people waiting to get in. we're about to show you how

federal stimulus dollars will help community clinics like this serve a lot more people while at the same time attract world class physicians to work here. this doctor sees patients usually turned away. they're uninsured. among some of the poorest in south los angeles. it's not easy to recruit doctors to work in community clinics like this. they work long hours, and they see lots of patients. sometimes upwards of 25 a day. they can make less money. up to 40% less than doctors in private practice. he could have gone to work anywhere else. he's a graduate of prestigious tufts university. life is a lot more challenging. why would you do this? >> i told myself i would only go into med inand pursue my life's dream if it wouldn't break the bank for my parents, wouldn't rob their retirement, and also do something needed. >> reporter: the son of indian

immigrants knew he wanted to become a doctor. but his family didn't have the money to pay for medical school. so he signed a contract with the national health service. >> breathe normal now. >> reporter: for every year the government paid for his education, he is required to give a year back. working at an approved clinic like st. john's. where would these people go if they couldn't come to see you? >> the emergency room. >> reporter: awarded $300 million in stimulus money to help more than 3400 physicians and health care professionals pay for their education. the fact that they have to give back to clinics like this makes recruitment of top notch people a whole lot easier. >> it makes it more than easier, it makes it possible. it's almost impossible to find doctors. >> reporter: vane nevanessa kne is one of those doctors.

a lot of your colleagues are starting their careers $200,000 in debt. was that a concern of yours? >> oh, definitely. i was really concerned about taking on that burden to myself as well as my parents. >> reporter: now she's free to work with the patients she feels needs her the most. >> reporter: if you could not come to this clinic and see dr. neal, where would you go? >> i don't know. it's very difficult. >> reporter: are you 3? 4? >> reporter: the doctors say even after they fulfilled their contracts with the government they will stay on. >> thanks. >> reporter: half of everyone who goes through the program does. thelma gutierrez, cnn, los angeles. and tomorrow on "american morning," can a $5.5 million resort town restoration town project be a good use of stimulus aid? why one woman is grateful the government is spending the money. coming up tonight at 8:00, is the stimulus working for average americans? we get an exclusive interview

with the man president obama picked to oversee the entire stimulus plan. and at 10:00, investigating why stimulus money is being wasted on unnecessary road signs. the stimulus project, all this week only on cnn, and at cnn.com/stimulus. it's 47 minutes past the hour. rob marciano is in steamboat springs, colorado, today. he'll have a check of the morning's travel forecast after the break. and in ten minute's time, bashing their own brand. jeanne moos tells us why dominos wants everyone to know their pizza was bad. i was active, eating healthy.

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it's 50 minutes past the hour. we get a check of the weather headlines. rob marciano, we had wicked weather around this area, debris flying off buildings in manhattan, it was pretty crazy yesterday. >> reporter: yeah, i saw that out here, the weather in the northeast with flooding rains and damaging winds in some spots. that storm rolling off toward the north and east. so why we're here? the 21st annual weather conference, a great opportunity to talk one-on-one with some of the leading scientists from around the world. and every year and even more so this year, one of the big topics is climate change. so that will be discussed today on various aspects of that.

but i did track down one of the scientists that will speak today. i asked him all the things we're doing or have planned, can we even make a difference to combat climate change. a lot of people are wondering what we're doing and what we plan to do to combat climate change. is it working, will it work? >> well i think it's a very, very good question. right now i would say no, it isn't working. the climate is changing, it will continue to change. we're committed to some increase in temperature, we're committed to a decrease in precipitation. >> reporter: can we slow it? >> can we slow it? yes, we can slow it. i think there's always a possibility of slowing down climate change if we slow down the amount of greenhouse gas we put in the atmosphere. >> reporter: jim along with other scientists, a little bit disappointed with what came out of copenhagen, which isn't a lot, and the latest bad pr with the glaciers in the himalayas,

bad report going into the ipcc report there. we'll talk more about that in the next hour. you know, it was cold this past month, but the decade of the 2000, the first ten years of the 2000s was the warmest we've ever seen. you'll cool down after the rains and winds yesterday. some snow behind it, but it shouldn't be a whole lot. it will slow down travel in chicago and more rain headed to southern california. if they get through today, they should be all right. avalanche warnings for the sierra and wasatch. i did sneak out to do field research, kiran, on sunday. but yesterday was all work and no play. >> field research meaning hitting the slopes? >> reporter: yes. investigative reporting. >> i wanted to see rob. >> reporter: seeking the truth. >> i wanted to see a wider shot of the interview to see if you were weari ining boots or ski b. >> reporter: oh, no. all work yesterday.

we'll be here about another hour. i'll find out more about that stuff. >> i have a sense, too, rob, that all that snow in the sierra might require closer investigation. what do you think? >> reporter: we'll try. as you mentioned word boondoggle you can only afford one once a year. i'm not pressing. thanks, rob.

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visit getquack.com it's four minutes before the top of the hour, time for the "moost" news in the morning. dominos is apologizing for their old pies. >> why would they distheir own pizza? the chefs are promising a better slice. so jeanne moos wanted to know if they've found pizza perfection. >> reporter: it may be the weirdest ad campaign ever, domino's bashes itself. >> worst excuse for pizza i've ever had. >> reporter: it's either the best or worst excuse for a campaign. >> the crust is like cardboard. >> the sauce tastes like

ketchup. >> reporter: they have sold this nearly 50 years. >> there comes a time when you know you've got to make a change. now domino's has a new pizza and the only thing that's the same? >> it's system round. >> reporter: all that stuff about the old pizza tasting like cardboard. >> reporter: why does the head chef still have a job? >> is that pizza or did an angel just give birth in my mouth? domino's old pizza's cheese did not taste good. had no aroma, was not cheese. >> reporter: but now they say -- >> shredded cheese. cheese. it's cheese. >> reporter: imagine saying this about the pizza you've been selling forever. >> totally void of flavor. >> reporter: so how's the new stuff? >> doesn't taste like kaurd board. >> it's not gourmet but it's

good. >> i like the old one better. >> kind of like you sucked, but now you're a little bit better. but you still suck. sorry. >> honey likes cardboard. >> no! >> reporter: wait, where are you going with that? >> i have a friend inside, she's hungry. >> reporter: you don't want the rest? >> no. >> reporter: one more bite. >> oh, no. >> i'm kosher. i can go to hell because of that piece of pizza. >> reporter: the market director shows -- >> how much america embraces the truth. >> remember what they said before calling it old. >> smell the garlic. >> reporter: and now the improved pie. >> buttery crust with some garlic. >> reporter: sure had new yorkers flocking to try it. >> 40% more herbs in the sauce. >> reporter: jeanne moos, cnn. new york. >> i'm game.

i'll try one if they fire one over here. >> i liked it before. but i guess i'm not that picky. >> as long as we don't go to that place for eating it. >> there you go. all right. well, it's two minutes until the top of the hour. top of the hour. top stories in just a minute. -- captions by vitac -- www.vitac.com it slides. it tows. it sees. it calls. and it fits. we gave it more ideas per square inch... because more is what we do. introducing the terrain, the all-new smaller suv from gmc. introducing the terrain, ♪ well, look who's here. it's ellen. hey, mayor white. how you doing? great. come on in. would you like to see our new police department? yeah, all right. this way. and here it is. completely networked. so, anything happening, suz? she's all good. oh, my gosh. is that my car?

[ whirring ] [ female announcer ] the new community. see it. live it. share it. on the human network. cisco. a nation drowning in red ink and a white house under pressure. president obama just a day before the state of the union

said to announce a severe spending freeze. the big question this morning, will it have any effect on america's colossal debt? thanks for joining us this tuesday the 26th of january. i'm john roberts. >> i'm kiran chetry. we have a lot of big stories in the next 15 minutes. first a plan to freeze spending. president obama preparing to announce a three-year budget-cutting strategy during the state of the union address. he'll also be trying to reconnect with middle class americans who believe he's left them behind. suzanne malveaux is breaking it down for us at the white house. and new video taken moments after the earth moved in haiti. dazed and confused people on the streets. the scope of the disaster just unfolding. today, millions of people are still shaken and will not go back incitsideinside. dr. sanjay gupta is live in the city still in fear. and how the $787 billion is being spent, we're calling it "the stimulus project."

this morning we've uncovered tax dollars going to keep food banks stocked with things like canned pork, but is that stimulating the economy? we're going to hear both sides of the debate. but first, one republican described the obama administration's plan for a three-year freeze on federal spending, going on a diet after a pie eating contest. the president believes his idea to cut the budget will appeal to both parties. >> we're going to talk about how we can, first of all, focus on job creation and growth, and i met with the republicans, by the way, several weeks ago and so i have their ideas. i know what they're proposing, and some of the things we proposed are some of the things that actually should get some strong bipartisan support. you know, i would say that the one thing i'm clear about is that i'd rather be a really good one-term president than a

mediocre two-term president. and i believe that. >> suzanne malveaux is working her sources at the white house this morning, and she joins us now. when the white house says freeze and spending, it's very narrowly cast, isn't it? >> reporter: you're right. one of the things you hear the president talk about is really trying to be a good one-term president if he has to be. that is about getting bipartisan support. it's really been a wake-up call for this president. that's why you hear him talking about and he will talk about freezing discretionary spending. it doesn't include homeland security, veterans affairs, but other items they hope to in three years save. it is a very controversial proposal. a lot of disagreements over whether or not this is the best approach. i want you to take a listen, this is the former secretary of labor robert reich under the clinton administration. >> i don't think it makes much sense, larry, and i'll tell you why. the government, under the circumstances we now face, is the purchaser of last resort.

consumers are not buying. they're still scared, for good reason. businesses are not investing very much. they don't want to invest if there are not consumers out there. so government has got to spend. this is something a lot of people have difficulty understanding. >> reporter: john, he's not the only one who's complaining about this, saying it's a bad idea. there's some republicans who have also said it doesn't go far enough when it comes to the freezes. the big items like medicare, medicaid, entitlement programs not necessarily being cut, and some democrats saying this goes too far. you'll have health care and education being cut. what this does do, however, is moves this president closer to the right, and that is what he needs to do. he needs to attract those fiscally-conservative democrats, independents and some republicans. the administration and this president admitted yesterday yesterday this is part of the reason health care reform wasn't passed. he didn't get partisan support. take a listen to what he said to

diane sawyer. >> we had to make so many decisions quickly in a very difficult set of circumstances that after a while, we started worrying more about getting the policy right than getting the process right. >> reporter: and, john, that is what the course correction is all about this go-round. this president obviously in a state of the union is going to be appealing to middle class voters and also to republicans as well as democrats saying he wants bipartisan support. he's got serious proposals on the table that he hopes will garner both sides support. >> the bush administration tried to reduce the so-called nondiscretionary spending but as always the white house proposes and the congress disposes. we'll see where it goes. >> reporter: thanks, john. in haiti this morning, it's two weeks after the earthquake hit, and hope is arriving literally by the boat load, it's called the barge of hope.

loaded with food, water, medical supplies, generators, other supplies. probably the biggest shipment of reli relief aid. all of it donated by the people of puerto rico. >> one thing not on the boat is shelter. haiti's homeless are pleading for tents. even the president has vowed to live in one. he's asked the world for 200,000 of them. the united nations says up to 1 million people do not have any shelter. this is new video obtained by cnn taken moments after the earthquake hit. it shows the buildings crumbling, dust rising and the screams coming from both outside and inside the rubble. it's a moment in time where no one really knows yet just how bad it will be, or how many thousands of people are trapped, or in the worst case scenario already dead. and those are images that many terrified people have been carrying around in their heads for the past two weeks. many of them still afraid to take their first steps inside. dr. sanjay gupta takes a look at

a city still on edge this morning. >> reporter: rumor of a big wave sends thousands running to higher ground. many of them leaving behind the only possessions they recovered after the quake. these injured survivors beg doctors to leave them outside. they're too frightened to be inside. >> they've been here three times, but every time there's an aftershock all of our patients run outside. there's just so much trauma, psychological and physical, no one wants to stay. both staff and patients refuse to go into any buildings. >> reporter: this is a standing house but there's nobody living inside. it's hard to overestimate the impact of all these aftershocks on someone's psyche. they're so frightened, they don't want to be in there. they're worried their house could come tumbling down. so instead they live like this. in these tents, makeshift tents, because they simply want to be outside where they think it's safe. how scared were you?

>> translator: very scared. >> reporter: it's been two weeks sinlgs the earthquake. are you still scared? had she says there's no one to help and she has nightmares of another quake. how many people are there like you out there? how many people in port-au-prince are going what you're going through? >> translator: most of people. >> reporter: it is difficult to diagnose post-traumatic stress disorder less than a month after the quake, but we know a few things. it is worse with people with a preexisting mental illness, those who have seen the most horrific images. best advice? try to be with family and turn to your faith if you can. but it is difficult when even the churches have been destroyed. so what does work? access to the basic necessities again. clean water, food, and even what

might be considered perks. pillows, blankets, some sort of routine. no doubt all of this is tough. and it is dangerous to generalize. but there's also simple evidence that it can work. today this young boy built a kite out of a paper plate. despite the odds, he get it's flying, bringing a smile to his face and ours for just a moment. as i said, you know, a lot of people not focusing on post-traumatic stress disorder as of yet. it may be early to be doing so. we are hearing some aid organizations are starting to think about bringing psychologists down, and to offer counseling, offer things like cognitive therapy, even exposure taerp. b therapy. but this will be weeks, months, perhaps years in the making, kiran. >> there's just so much need, as you showed in that piece. sanjay, thank you. coming up, u.n. special adviser jeffrey sachs joins us

as the focus tornadurns to long needs. we'll look at what it takes to rebuild the country. so many in haiti are asking the question, now what? we've got a poignant example of that coming up.

♪ 12 minutes after the hour now, time for a quick check of what's new this morning. the brother of olympic figure skater nancy kerrigan has been charged with assaulting their 70-year-old father. daniel kerrigan died over the weekend at the family's massachusetts home. prosecutors say his son, mark, grabbed him by the throat during ab argument about using the phone. the heart attack happened subsequently after that. mark kerrigan has pleaded not guilty to the charges. kerrigan's mother says her husband died of that massive heart attack. authorities are still investigating the incident. there are new penalties for drivers of big rigs.

no texting. ray lahood is issuing new federal guidelines. effective immediately, commercial truck and bus drivers who text while driving could face civil or criminal penalties of more than $2700. lahood says it's an important step in reducing the danger of distracted drivers. and a royal firestorm, vacation pictures fueling mounting criticism of royal caribbean cruise lines for resuming service to haiti just three days after the earthquake. photos taken friday show passengers enjoying fun in the sun. just 100 miles north of the death and devastation. royal caribbean points out the ships are also carrying relief supplies. the company promises to donate all revenue from the stops, plus additional $1 million to the relief effort. so with the search for survivors in haiti over, recovery and rebuilding begins. but where do you start and how when you've lost everything? ivan watson joins a successful realtor and proud father who's now homeless and struggling in

the face of an uncertain future. >> reporter: armed with a single hammer, he takes apart what's left of his house. he and his family are lucky to be alive. [speaking in a foreign language] this is amazing. there were six people in this building and they all made it out alive with no injuries. nearly two weeks after the quake, the question hundreds of thousands of people like michelle are asking is, now what? so far he's salvaged a speaker and a couple of plastic buckets. he says he doesn't know what he's going to do tomorrow or the next week. everything he owned was in this house, and he doesn't see a future for haiti right now. he is a 53-year-old realtor who rented out rooms in the house he built 20 years ago to help pay for his kids' college education. now he has no choice but to live here. in this sprawling camp located on what used to be a golf

course. he gets lost in this maze of shelters, trying to find his family. then he stumbles across his daughter, 17-year-old saldomia. they take us to their new home, a makeshift tent that houses two families. the air here is hot, fetid and flush with mosquitos. the only place to cook is in the corner. >> it's very difficult to see, but for living here. >> reporter: do you get sad here? sat? >> very, very sad. very. very. i don't like it. >> reporter: it's a blow to the pride of a father accustomed to being able to feed his family. hopeless and confused in a place with no future. ivan watson, cnn, port-au-prince.

>> so as you can see, ongoing humanitarian aid in haiti is crucial. if you want to help, check out the dozens of reputable charities listed on cnn.com/impact. it's now 16 minutes past the hour. 31 are streaming a sales conference from the road. 154 are tracking shipments on a train. 33 are iming on a ferry. and 1300 are secretly checking email on vacation. that's happening now. america's most dependable 3g network. bringing you the first and only wireless 4g network. right now get a free 3g/4g device for your laptop. sprint. the now network. deaf, hard-of-hearing and people with speech disabilitie.

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19 minutes past the hour, time for "minding your business." the obama administration is pouring billions to kick start the economy. but does the public buy what the white house is doing? there's a new cnn/opinion research poll just out finding 12% feel the stimulus has improved the economy. 46% saying it has stabilized conditions. 22% saying it had no effect, and 19% of people polled say it made things worse. all this week cnn is your stimulus watch dog. >> we've got a team of producers and reporters breaking down where the money is going and if it's having an impact. christine romans is live on our magic wall this morning. you're looking at millions going into canned pork. >> this is real pork. this is pork people are actually eating, you guys.

let me show you how the food breaks down. we know it's going to fixing roads, saving teachers jobs, but also helping put food on the plates of struggling americans. $19.6 billion for food stamps over the next five years. next we've got $100 million to update school lunch meals, that means junior or jane could be benefiting at the school cafeteria, and $100 million for food banks. big nape names in the food industry got money, we followed that money from the treasury to the plates of struggling americans. >> thank you so much. >> robert never thought he'd carry home his groceries in a box from the food pantry. this single father of two from rural franklin, north carolina, lost his job as a carpenter more than a year ago. now, like 18 million other unemployed americans, he struggles to make ends meet. >> i can't believe i'm here.

i'm the one that's usually donating around thanks giving time and christmas time. and now here i am, i'm needing that. and it was just surreal. >> reporter: his dinners are now paid for in part with $100 million of stimulus money. awarded by the government to food companies you've heard of like del monte, jennie-o and tyson to make food for overburdened food banks. but the biggest influx went to little known lakeside foods, one of wisconsin's largest companies. it received more than $21 million to make, among other things, canned pork. lakeside declined to talk to cnn, so we went to their factory in plainview, minnesota, to find out how employees feel about the lucrative contract. >> it's great. it helps the company out a lot. >> i heard they received some money but i didn't have an idea of how much it was. >> reporter: it was enough, according to our government sources, to create 52 new jobs. overall, the department of

agriculture tells cnn the entire $100 million for food companies created 195 jobs before for the head of man in a food bank in asheville, north carolina, her priority is feeding people. >> it is not a waste of taxpayer money. the economic stimulus package has helped us to provide for the most basic needs for people who are truly in need. >> reporter: her food bank gladly took that canned pork. where demand is up 40%. so did thousands of other food banks across the country. but is this stimulus? >> this is clearly a type of welfare and it's a welfare expansion. robert rector, a senior at the heritage foundation, approves of using federal money for food banks. but he argues the entire stimulus bill merely expands welfare. >> it does help support people who have lost their jobs and that's a good thing but it's not going to put more jobs back into the economy. >> reporter: steven kyle, a

professor of economics at cornell disagrees, saying there's also a ripple effect. >> sure it's stimulating the economy. that food is produced here in the united states. that lates the u.s. economy. those farmers make money, they buy more equipment, hire more laborers, maybe they buy a new caterpillar tractor. who knows. >> reporter: as for robert, the stimulus did keep him and his daughters samantha and alison. >> my kids have to eat. we all have to eat. >> reporter: that's the point of all of these billions of dollars really overall to somehow feed american families. $100 million of the stimulus dollars for food companies helped create 195 jobs, according to the department of agriculture. and a great update from robert now. we just learned that after being out of work for 13 long months, he got a new job. he's a carpenter, he'll be building log cabins. >> how long do these jobs last?

>> some frankly are only lasting half a year, or a few weeks. these big food jobs, we just don't know how long those jobs last because these companies wouldn't talk to us, john and kiran. they did not want to talk about these big cash contracts they got from stimulus. they just didn't want to. >> great story, though. tomorrow on "american morning," can a $5.5 million restoration project be a good use of stimulus aid? why one woman is grateful the government is spending the money. tonight at 8:00, is the stimulus working for average americans? an exclusive interview with the man that president obama picked to oversee the stimulus plan. later at 10:00, investigating why stimulus money is being wasted on unnecessary road signs. the stimulus project, all this week, only on cnn, and at cnn.com/stimulus. 25 minutes now after the hour.

♪ 27 minutes after the hour. top stories a couple minute as way. but first, an "a.m. original," something you'll see only on "american morning." >> dozens of hollywood stars have been moved by the devastation in haiti, but for one famous director, helping the people isn't just a calling, it's a passion. alina cho has that story for us this morning. >> reporter: good morning, guys. we're talking about jonathan demme, best known for blockbusters like "silence of the lambs" and "philadelphia" but did you know he's also made not one, but two documentaries on haiti? projects he calms labors of love. he's been to the country several times and two weeks after the quake he says is he still st stuned.

>> he's had a love affair with haiti for more than 20 years. when he heard about the earthquake, he wanted to help. >> i almost went last weekend. i got my shots, i've got to get on a plane, i'm going to go down and help. what am i going to do? >> reporter: the academy-award winning director's passion for haiti came first through art. walking by a gallery in the mid1980s. >> i was really kind of overwhelmed with the creativity of the paintings, the excitement of the music, and i thought, wow. haiti. this is very interesting. i bought a painting. >> reporter: that led him on a trip to haiti to find more paintings. what edition covered was a country full of people as vibrant as their art. it was 1986. ♪ >> it was an extraordinary moment in haitian history, because the bdictator for life had been overthrown by a popular revolt. and i was so excited about this -- kind of this fervor for

democracy. >> reporter: so demme made two documentaries on haiti for the rest of the world to see what he saw as the haitian spirit. including "the agronmist," founder of radio haiti international. [speaking in a foreign language] >> reporter: jean dominique, a man who fought and gave his life in the pursuit of democracy. >> risky business. because every information, even about the garbage in the street, was seen by the power as opposition. >> and he was brilliant at the microphone. and i thought, well, i can see why this guy is so popular. in fact, i would love to cast him in a movie. >> i am sure now that things will be better. >> reporter: while demme reels at scenes of sheer devastation from haiti, he also sees what he

says is their true character. ♪ >> the resiliency of the haitian people are going to keep them going, keep the country going, and i still absurdly have this great belief that it's just not over for the haitians. >> reporter: even in the midst of this tragedy, every night on the streets people are singing. >> yeah. >> reporter: were you surprised by that? >> i wasn't surprised -- there's a moment of -- my god, they're singing. and then the next thing is, of course they're sing. that's again the haitian spirit. that's the beauty, the creativity, the spirituality, the depth of the haitian spirit. >> jonathan demme says he plans to go back to haiti within the next six months to a year. his next hope is to do a documentary this time on how the haitian people are recovering after the earthquake. he says, remember, haiti beat france in the revolution. haiti is the first black republic in the new world.

that's the strength of the haitian people. that's why he's so certain haiti will be back. >> they certainly have had their share of challenges. >> certainly have. time for this morning's top stories. president obama is ready to announce plans for a three-year federal spending freeze in his state of the union address set for tomorrow night. $250 billion in discretionary cuts made to domestic programs if congress approves. defense department and homeland security budgets would not beism pacted. a car bomb exploding in baghdad today, 18 people killed. 80 others wounded. just yesterday three car bombs targeting central baghdad hotels killed at least 36 people. 71 others were hurt. there's new video from a closed circuit camera in lebanon apparently showing an ethiopian airlines flight crashing early yesterday morning into the mediterranean sea. the lebanese transportation minister says that the pilot of the plane was flying in the wrong direction after takeoff and made a, quote, strange turn

when the beirut control tower asked him to make a correction. 21 bodies have been recovered so far. there were 90 people on board. the president of lebanon says there's no evidence of foul play. john? two weeks after the earthquake in haiti, rescues are giving way now to recovery efforts. soon the focus will shift from finding the dead to giving the living a fresh start. top officials for more than a dozen countries including secretary of state hillary clinton met in quebec yesterday. talking about this more, jeffrey sachs, had his own meeting at columbia yesterday. >> thanks a lot. >> at this conference in montial yesterday, they talked about an initial ten-year commitment. initial. how long do you think this will take it. >> ten years will accomplish a great deal of rebuilding and put being the country on a pafth of development. there have been so many times

that there have been big announcements without follow through, we have to make sure after the lights go out, after the life goes on that there is a sustained effort. that's going to be the big challenge. >> in order tore move forward in haiti, i suppose you also have to consider the past. otherwise you're bound to come mitt the mistakes of the past. how did it get to be 80% below the poverty line? >> hugely disastrous dictatorships and so forth, but also u.s. mistakes over the years. we imposed trade embargoes on the country to try to get politics to move one way or the other, breaking their own economy in the 1990s. the bush administration went after president aristade in the early years of this past decade and that also put the economy into a further tail spin. so the fact of the matter is it's a complicated story. this is vital that the u.s. and haiti and other countries

finally work in the positive direction together. there's no bottom below this. hundreds of thousands of people are fighting for their daily survival right now. if we lose time there's a hurricane season around the corner. massive hunger, there's still an unbelievable health crisis even after 150,000 people have been killed. >> and you also have at a very labor intensive society all these new amputees. >> the disasters go on and on. what happened after the 2008 hurricanes, four hurricaning hitting in a row, the world community said we're going to help, we're going to help, and i was watching that process very closely. quite involved with president preval. the world community including the united states and others couldn't get their act together to do anything. so the real test is actually doing something, and time is extraordinarily short. the rains start in eight weeks, the planting season starts in eight weeks, the hurricane

season soon after that. are so-called international partners going to be ready? i'm urging they put money in one account rather than fighting over turf, put in in interdevelopment bank so there's real health care, real assistance, for the planting season. >> what about the debt obligation that has saddled haiti for so long? the international monetary fund was talking about a relief fund of $100 million but didn't say whether it would be forgiving the $900 million in debt. >> there's no way this country deuced to rubble can repay the debt. the fact of the matter is the numbers, $100 million here, $100 million there don't rise to the occasion. you do a look at the envelope calculation and it looks to me as if the quite urgent needs are $3 billion a year. not just this year, next year, next year, for the next four or five years. we have to get real on this. >> there's also the problem of sort of institutional corruption

there and how you make money get into the right hands, perhaps as you said putting it in one account could help. let me change gears for a second, you've got thoughts about this three-year spending freeze the obama administration is talking about. what are you think something. >> whoa. a bit of disarray, it seems. last year, just spend, throw everything into a stimulus package, people saying, what's in there? and then this year, just across the board freeze. frankly the government has to make better choices and better plans than throwing things into a big pot in one year and then freezing across the board the next year. we have areas in that so-called discretionary spending that urgently need more funding. and to freeze across the board i think would be kind of a dereliction of duty. >> would it be a bad idea to take on more debt? >> the fact of the matter is we're spending a lot of money, $200 billion in afghanistan and iraq. is that money well spent or shouldn't we be spending that at home for rebuilding our own

country? so i think there are a matter of choices. these bankers are going to be taking tens of billions of bonus. that's our money. why don't we take that back and help rebuild our own economy? so i don't think we're making the right choices and across the board actions aren't going to solve the problems. >> jeff sachs, always good to hear from. >> let's hope for something better. >> thanks so much.

♪ welcome back to the most news in the morning. all this week, cnn is your stimulus watch dog. we're poring over the plan to see how your tax dollars are being spent. the heartbeat is the stimulus desk in atlanta. t.j. holmes is on duty this morning. good morning, t.j. what are you finding? >> reporter: the heartbeat, as you say, we're pumping at this stimulus desk. these are open investigations of this stimulus money. yellow dots show there is an investigation actively going on. green dots mean we have gotten calms back and answers we had and maybe questions out there viewer his and americans had.

taxpayers have about these stimulus projects. right now we'll focus on bristol bay, alaska. some would say this is a project that certainly is needed. money for expanding broadband in rural areas. let me tell you what happened in the recovery act. the stimulus program. $7.2 billion. 7.2 billion was set aside to expanding broadband. of that money, a portion of it will be handed out by the ago culture department to rural areas so they can expand broadband. $7.2 billion overall to be handed out. a project there in bristol bay, $88.1 million of your tax money. this is one we can tell you about, $88.1 million of your money went to this community to expand broadband. so what did you get for your

$88.1 million? that is what we're looking into. let's show you the results now. you are getting 80-plus jobs have been created by this project. that's a pretty good thing. 80 jobs. that's directly related to your tax money, jobs have been created. what else have you gotten? it has expanded broadband to thousands upon thousands of homes there. hundreds of other businesses, a couple of -- several schools, hospitals, 60-plus clinics as well. so that is what we can tell you directly is where your money has gone to. so that is what we're doing this week, john, we're showing directly how your money, how the millions and millions of stimulus goes directly to a project. we're breaking it down like that and you can judge for yourself. the taxpayers, judge for yourself exactly if you think your money was put to good use. some people say that certainly is a good use. we got jobs and expanded broadband, expanding people's

businesses, distance learning as well. so maybe money well spent. >> as we've seen, t.j., here in this country and remote areas of africa, hooking people up to the internet really can make a big difference. we'll keep watching bristol bay and see what happens. t.j. holmes this morning, thanks. that $7.2 billion is helping one couple trade in their day jobs for their dream jobs. they're turning a hobby into a lucrative online business. but doing what you love and getting paid for it does have its price as deborah feyerick shows us now. >> reporter: this family is getting ready for work, which is right downstairs. the couple, both artists, traded in their day jobs to pursue a dream of making and selling their own line of nature-inspired jewelry. the idea hit alison four years ago after ada was born, as a way to stay home and make some money. but as her company grew, the hours became longer.

much longer. >> i was able to really build it up to a point where it was starting to take over my life. >> reporter: to make it work, brett quit his job as a mural painter. >> it's hard. owning a business, running a business, making things, have you to stay on top of it, stay ahead of the curve. >> reporter: a lot of success came through etsy, an online crafts fair which claims 99% of everything sold is made and bought by women. >> it's foolish to think that anything super rewarding is going to be easy. >> reporter: 28-year-old robert kaelin helped create etsy five years ago. he now employs 75 people, gets part of what is listed and sold and is only getting back to his real love, making furniture. >> little did i realize i'd be spending all the time on the marketplace and not building stuff anymore. >> reporter: etsy was recently criticized for encouraging people to quit your day job.

>> it's not as easy as it sounds. >> erin krug, a former science teacher, makes organic soap which she sells from her online etsy shop. >> unless you're willing to cut into your family time, that's not a reality to quit your day job. >> reporter: she makes enough to cover the car payment but otherwise relies on her husband's salary. a perk when she has to drop everything -- >> yeah, i can come get him. >> reporter: and fetch a sick kid from school. >> if i was supporting the family, i would need more hours in the day. >> reporter: as for jewelry makers alison and brett, they do make ends meet and are thinking of hiring their first employee. >> i just want to make a feasible lifestyle so we can spend a lot of time together and not have to worry about a boss. >> reporter: like many people who launch their craft-based businesses on etsy, alison and erin were able to get their

products in front of millions of people without ever leaving home. the payoff is they get to do what they want. the potential downside is there are many, many customers they have to make happy all the time. >> you've got to keep churning them out. people say when you own your own restaurant you work 24 hours a day. >> reporter: that's exactly right. there's an upside but also a downside. >> pretty neat, though. >> deb, thanks. tomorrow on "american morning" as we continue to follow the stimulus project, can a $5.5 million resort town restoration project be a good use of stimulus aid? one woman is grateful for the government spending the money there. we'll hear from her and find out why. also coming up tonight on "campbell brown" at 8:00, is the stimulus working for the average american? an exclusive interview with the man president obama picked to oversee the stimulus plan, and later at 10:00, investigating why stimulus money is being wasted on what some are calling unnecessary road signs. i have asthma.

and when my symptoms-the coughing, wheezing, tightness in my chest came back- i knew i had to see my doctor. he told me i had choices in controller medicines. we chose symbicort. symbicort starts to improve my lung function within 15 minutes. that's important to me because i know the two medicines in symbicort are beginning to treat my symptoms and helping me take control of my asthma. and that makes symbicort a good choice for me. symbicort will not replace a rescue inhaler for sudden symptoms. and should not be taken more than twice a day. symbicort contains formoterol. medicines like formoterol may increase the chance of asthma-related death. so, it is not for people whose asthma is well controlled on other asthma medicines. see your doctor if your asthma does not improve or gets worse. i know symbicort won't replace a rescue inhaler. within 15 minutes symbicort starts to improve my lung function and begins to treat my symptoms. that makes symbicort a good choice for me. you have choices.

ask your doctor if symbicort is right for you. (announcer) if you cannot afford your medication, astrazeneca may be able to help. who's not answering. announcer: there's a better way. intuit quickbooks online p9 organizes your business in one place, and helps you stay on top of your business anytime, anywhere. get a 30-day free trial at intuit.com. it's 49 minutes past the hour. now a check of this morning's weather head lines. rob marciano is in steamboat springs this morning. >> reporter: some storm the northeast had yesterday with the rain and the wind, and now that storm is heading off to sea. but behind, it colder air certainly moving in, and in some cases lake-effect snow showers will be littering parts of the landscape there west of the appalachians especially. the cold air has yet to get into the i-95 corridor but will as temperatures are below freezing

toward the west. speaking of the west, more energy pouring into the west coast. a couple storms roming into the sierras. the sierras. avalanche warnings are posted for the sierra. breezy conditions extending down to the south and east. not quite as bad as yesterday if you are traveling across the northeast. and philadelphia, rain and snow in salt lake, and then the rain and low clouds across los angeles and san francisco. the weather summit, top meteorologist get together with top scientists and they give us the 411 on severe issues. tomorrow will be about the climate change. i caught up with a scientists and we talked about the

frustration about why they think we are not doing enough. >> in reality, we have not faced reality. we have yet to reach the point of taking an adult look at the situation we are in. >> reporter: you think we have not felt the problem? is that the problem, we have not felt it enough? >> that's part of the problem, if you don't feel it, you will not do something about it. we don't have governmental system that works on that scale. >> reporter: record breaking cold and snow in some cases. the past ten years have been the warmest ten years since we have been keeping records. so that's a little bit of what is going on. also, john and kiran, i got to catch up with a five-time olympian, and we will profile his story during the week of the

olympics. >> you mention a lot of snow hitting the wau tau range, and maybe it's time to do an el nino story. >> that's pretty ironic, because they don't have the snow where they need it for the olympics, right, they have to truck it in. ! [ female announcer ] ...you only need so much. the same is true with bath tissue too. that's why there's charmin ultra soft. its ultra soft design is soft and absorbent. it has so much absorbency you can use 7 sheets versus 2. y can get more out of less. smooooooth. [ female announcer ] charmin ultra soft. enjoy the go.

>> naughty. >> naughty.

55 minutes past the hour. normally we bring you your a.m. house call, and sanjay is on a project and we will talk to him later, but we will look at something else. >> some critics are not too happy about one success. here is jason carroll looking into it. >> you cannot wait. think. fly! >> reporter: "avatar" is a billion-dollar grossing epic. there is something about these blue beings that has critics seeing red. >> if you are a ration al invir

mental guy that some say pushes a liberal agenda. >> i think the left wing politics are apparent. >> everything that flies or scouts in the mud. >> the military on pandora. cameron could not disagree more. his brother is a former marine. he talked about "avatar"'s mean at a studio in november. >> i want to take people to another world, out of their

daily lives on a fantasy journey. >> reporter: a studio representative says the beings are spiritual, but that doesn't mean it's anti-religion. >> you are not going to say, yes, i made a movie politically left wing. maybe after it made $10 billion, he will say it's left wing, i admit it, but not until then. >> for now, audiences keep coming with their own opinions. >> i think it's anti-imperialists military. >> i thought it was a mind blowing visual experience more than anything.

>> reporter: sjason carroll, cn, new york. >> it was a bit much, imax and 3-d was a bit much. >> those messages all coming out in extraordinary 3-d graph yikz. >> i did not think that i was going to like it, but i did. >> top stories are 90 seconds away. new breathe right extra. the only strip with an extra spring-like band, it's 50% stronger for congested noses that need extra help in opening nasal passages... so you breathe even better. and now get two free samples...

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good morning to you. it's tuesday, january 26th. welcome to "american morning." glad you are with us. i am kiran chetry. >> the president is going to make the pitch to congress during his first official state of the union address tomorrow night. he will make one other request to the people. also cnn focus on president obama's stimulus program. stimulus desk is working long hours pouring over reports.

is it money well spent? >> and a new video, dazed and confused people on streets. the scope of the disaster just unfolding. millions are shaken and will not go back inside. anderson cooper on the ground as rescue turns to recovery and concern grows for those left alive. first, with america's deficit now topping $12 million, president obama will ask congress for a three-year spending freeze in the first official state of the union address tomorrow night. he hopes to erase red ink while winning back the hearts and minds of americans that cannot make ends meet. suzan suzanne malveaux is at the white

house. >> reporter: this is skregs nary spending over three years. it's not, for instance, going to deal with the defense department and homeland security or veteran's affairs, but domestic programs and the tune of $250 billion is what the obama administration is hoping to save in the time period. this is very controversy. republicans and democrats are fighting over this already. this is robert rice under the clinton administration who believes this is a big mistake. >> i don't think it makes much sense, larry, and i will tell you why. the government under the circumstances we now face is the purchaser of last resort. consumers are still not buying. they are still cared for good reason. businesses are not investing much, so government is going to spend. this is something that a lot of people have difficulty

understanding. >> reporter: economists are weighing in on this, and you have republicans saying the cuts or the freezing spend doesn't go far enough, it does not deal with big ticket items, medicare and medicaid, and democrats are afraid of facing severe cuts. it puts this administration closer to the right. that's what this administration wants and needs to attract not only those fiscally conservative democrats. we heard this coming from the president yesterday when he explained one of the reasons he felt health care failed. this to diane sawyer.

take a listen. >> after a while we started to learn more about getting the policy right than the process right. >> reporter: the president acknowledged he needs bipartisan support and needs the supported from independents and republicans, and that's what he is trying to do to get anything done coming this year. you will hear in the state of the union a populous message, john, one that appeals to the middle class. >> suzanne malveaux, thank you for that. we are going to be joined by our senior political analysts and james carville, and they will focus on a plan to win back americans. four minutes after the hour, and we focus on haiti. rescue efforts have given way to recovery of sorts. survivors are still in desperate need of shelter, food, aid, and

medicine. one million people are homeless. haiti's president is asking the world for hundreds of thousands of tents, and even he is planning to sleeping in one, he says. and it's called the barge of hope, 200 feet long and 80 feet wide stacked five palated high, all donated by the people of puerto rico. anderson cooper is live in port-au-prince. what is your perspective on the ground? how quickly do you see things improving? >> reporter: you certainly see day by day improvement. yesterday looked better than it did on thursday or friday of last week. but the needs are still great. we are still getting a lot of aftershocks. this morning we just had three aftershocks. one was just a short time ago. that unsettled people and

reminds people this is still an on going situation, and their homes are still unsafe. most of them don't have access to clean drinking water, and water has to be handed out. it's a very, very difficult situation. and, you know, two weeks out, much of the world feels like it's a long time in haiti. it feels like this is something that is happening every single day. >> is it too early to talk about rebuilding haiti. you look at all the devastation, and even things like the roads unable to be cleared, and clean drinking problem is problem. what is the starting point? >> well, haitians themselves have started doing this. you see on rubble sites people trying to organize what concrete blocks can be saved. you see people trying to recycle everything. we are seeing people picking over rubble sites, and not just removing bodies but removing all the objects that can be saved

and trying to do what they can. that in a very kind of ad hoc process has begun. there was a meeting yesterday in canada, secretary of state hillary clinton, and foreign ministers of haiti and foreign ministers from around the world met to discuss the large-scale rebuilding, within 30 or 60 days. they will have a donor pledged meeting in which people pony up the money for haiti to be rebuilt. there cannot be money flowing into the country without a large-scale plan. so that's certainly what world leaders plan to be doing. the haitian people have begun to do this. >> people taking a look at this were looking at a marshal plan of sorts for haiti. anderson cooper, thank you so much. he continues at 10:00 tonight live talking more about the aid, the delays and in some cases the

growing crisis on the ground. developing this morning in san antonio, texas, families are still out of their homes after the earth shifted in their neighborhood. engineers say it's not a sinkhole, but maybe a slope failure. the earth slid downhill into two retaining walls and left some of the gaping cracks in the earth, and some of them 30 feet deep. >> jacqui jaris is joining us now with the forecast ahead. an unbelievable sight to seat homes look like they are swallowed up? >> yeah, i wonder if drought is related at all? it has been bad in texas over the next six months, and that can shift the foundation of your home. and then our storm system brought all the wind and the damage yesterday, that's finally

starting to pull out a bit. you will deal with it, new england, this morning, but by this afternoon watch for improving conditions. and then winter weather advisories and snow accumulation light, however the winds will keep visibility low. look at the windchills, nasty. out west, three days in a row for dry weather. today not likely to be day number four. john and kiran, back to you. still ahead, the president retooling his strategy as he gets set to deliver his first state of the dress tomorrow. we will talk about that coming up.

welcome back to the most news in the morning. it's 12 minutes past the hour. president obama is preparing for his first state of tfof the uni address. his poll numbers dropping. how can the president sell his plan to the american public? we are asking senior political analysts, ed rollins, and then also james carvel. congratulations. you broke hearts in new york with the saints. sources say president obama will be painting himself as a populist, proposing a free for spend. almost like he is back on the

campaign trail. >> i think it's time that he do that and explain to the people what he inherited when he came into office and how he is trying to deal with it, that he has a strategy to deal with it. the first year it looked rather ad hoc, and hopefully this is the beginning of a narrative to tell the country where we are, and how we got here and what we can do to get out of this mess. >> one of the wake up calls was the erosion of independent support you saw in the massachusetts race. >> i applaud him for some fiscal restraint. it has a long way to go than just the nondiscretionondiscret spending. he is going the right direction.

>> james, your opinion piece arguing that the democrats need to get better at finger-pointing, and they should blame president bush. you wrote the u.s. was ready to turn the page on the bush years, and he was refreshingly naive is believing his own rhetoric, and you say a changed candidate does not translate into changing washington. do you think the blame game will work here? >> i take that page from ed's boss, reagan. he did not finger point at the carter administration, he pointed his whole body at him. washington has two rules when you come in office. one rule is don't work back and number two is work across the aisle. president obama spent the whole

year trying to work across the aisles with the republicans who had no intention of working together. the washington consensus is always wrong. when people learn that, they have been successful. president reagan did not buy into it from the day he got there. and i don't think the democratic congressional candidates has no idea, but the president has to explain to the country how the country got in the possession it's in, and how he has a plan. >> we know technically, the spending was out of control with bush. >> he was basically trying to do the same thing he is today with the stimulated budget. i think at the end of the day, people today are concerned about the leadership of the president

and the congress. can they direct the country in a different place. i think that's the key thing here. if you want to talk about the past, democrats are now starting their fourth year in charge of the congress. the president is starting the skd year of his term. at the end of the day, people want to know what he is going to do. >> we are doing interesting research on how long the reagan administration kept blaming the carter administration. and bush came into office and blamed carter for a surplus that was too big. there is a lot of interesting research that is going on here. the rule in washington is, if the republicans do it, it's good, and if the democrats do it, it's finger-pointing. i am just not playing by anybody's rules, including your

wife's. >> and then there is a favorability poll dropping. americans asked applauded the democrats loss of the 60-seat majority in the senate. how big of a concern is that to you? >> an enormous concern. people see -- by the way, people try to say, and they see the bailouts and don't understand why. they say, well, they bailed out aig and goldman sachs got a dollar on the dollar and yet there is nothing being done in their mind about unemployment and people losing their houses. until this administration stands up and says this is what we will face, and this is what we did, and this is our strategy, these things are going to continue to happen. it's understandable. >> the critical part of that, not to cut you off -- >> that's all right. >> i will pick the ball up, who ever dropped the ball, i will pick it up and run with it,

otherwise it's more of the same. >> now, how do you seize this opportunity instead of being painted as the party of no? >> my argument is like james. i run campaigns out in the country and not in washington. i want good candidates, basically going out and challenging the incumbents and challenging what they have done. that's who you are battling. >> state by state? >> yes, and district by district. >> both you, thank you for being with us this morning. the primetime coverage of the state of the union address begins tomorrow night, 8:00 eastern with the best political team available. a stimulus project continues today, how the stimulus bill helped people. christine romans follows that

for you.

welcome back to the most news in the morning. we are undertaking to see where the stimulus money is going. in a poll, 7% said it improved their situation, and one-fifth said it made things worse. >> christine romans is mindsing your business. you found interesting stimulus

money being spent on real pork, not the washington pork. >> we know stimulus is helping to put food on the plates of americans. $100 million to update school lunch equipment. $100 million for food banks. some food industries got contracts to stock food banks. we followed your money to the plates of the struggling americans. >> robert thought he would never carry home food from a food bank. like 18 million other unemployed americans, he struggles to make ends meet. >> i cannot believe i am here. i am usually the one donating

around christmastime or thanksgiving time. it's surreal. >> reporter: his dinners are now paid in part with $100 million of stimulus money awarded by the government to food companies to make food for overburdened food banks. but some cash went to lake side foods, one of wisconsin's largest companies. it was awarded money to make canned pork. li we went there to find out how the employees feel to talk about the lucrative contract. >> it helps the company out a lot. >> i had no idea how much it was. >> it was enough to government sources to create 52 new jobs. and the entire $100 million for

food companies created 195 jobs. for the head of the foot bank in north carolina, her priority is feeding people. >> it's not a waste of money. the stimulus package helps us to provide for the people truly in need. >> reporter: demand is up 40%, and thousands of other food banks helped out across the country. but is this stimulus. >> this is a type of welfare. it's a welfare expansion. >> a senior fellow at the think tank approves using federal money for food banks, but he argues the entire stimulus expands welfare. >> it's not going to put more jobs back into the economy. >> steven kyle a professor in economics disagrees and says

there is also a ripple affect? >> yeah, it's stimulating the economy. that food is produced in the united states. the farmers end up with more money, and they hire more laborers or buys themselves a new tractor. >> reporter: as for robert, the stimulus bill may not have given him a job, but it did keep him and his daughters from going hungry. >> my kids have to eat. we all have to eat. >> $100 million of your stimulus dollars for food case that helped 195 jobs, and that's according to the department of agriculture. and a very happy to give you an update from robert, and he just got a new job after being out of work for 18 months. he is a carpenter and will be building log cabins. we tried to talk totd food companies to see how long the jobs would last and if they were

able to put on new shifts or if it was over time for some workers, and the big companies did not want to talk about their stimulus cash grants. >> in some ways they were not designed to create jobs forever. >> this is one of those things where the economic benefits are not measured in jobs, but measured by helping people until they can get a job. and a restoration project, could it be a good use of stimulus aid? we will find out one woman is glad that's how they are using the stimulus money. and then more in depth

information can be seen by going to cnn.com/stimulus. we will talk about john fedderman, the mayor of braddic, pennsylvania. it's a bad situation, and how can the stimulus help him? we'll find out.

this just in to cnn out of afghanistan. a suicide bomber has struck outside camp phoenix in kabul. no word if the wounded are civilians or soldiers.

french lawmakers are considering a ban on burkas, the full body coverings by some women. the ban would like it illegal to wear a burka in hospitals schools and on public transportation, but not apply to women wearing one in public. >> and president obama is not concerned about a second term in office. he will deliver the first official state of the union address tomorrow night. with his poll numbers slipping and millions of millions of middle americans down with the

economy. >> i would rather be a really good one-term president than a mediocre two-term president. some people say our job description as elected officials is to get re-elected. that's not our job description. this week our stimulus project is keeping tabs on where all the stimulus is going. and we go to braddock, pennsylvania. now, just 3,000 people remain. and unemployment is sky high. and the biggest employer will close on sunday. and the mayor of braddock joins

us now. >> the biggest employer, which is the university of pittsburgh medical center, they are closing their hospital and not only will we lose jobs, but we are losing our access to health care for many residents as well. >> sketch out the situation there? how are the folks doing? >> our unemployment is two and a half to three times above the national and the county average. we are in the 30s there comfortably. that does not factor in the more recent development of the many jobs that will be lost by the hospital closing this sunday. >> so you have gotten some stimulus money. how much have you got and where is it going and how much has it helped you, if at all? >> it has helped a great deal. we have about $250,000 to upgrade our sewer system to be in compliance with the environmental protection agency.

and not sexy kind of things, or head-line grabbing but still messing in a community like braddock where we are having to raise revenue taxes. and then we have a smaller grant where we could hire 30 young people, which was beneficial, too. >> i remember you saying we have green projects and shovel-ready projects, and have you gotten money to fund those projects? >> no. that's an excellent point. that brings me to what i believe about the stimulus funding, that it's greatest potential could lay ahead by funding these projects. when umc bailed on our town, we have a hospital in town that will be vacant in four days. these are the kinds of issues that towns across the country are dealing with. we need that kind of quick

responsive deployment of resources to help us not get back on our feet, but just maintain where we are at now. so it's a very serious situation. >> mr. mayor, 200 of your colleagues met with president obama last week and one of the messages that they had about the stimulus package was all the munee will be given to the states, and why not bring it to the cities, and directly to towns. >> amen. that would be tremendous. i would be more than happy to compete on the merit of the ideas and projects that we have not only in braddock but in our county. we have projects that could be a shot in the arm to not only my town but to the region as a whole. and when you consider the amount of resources that went to the banking bailout and then areas like braddock, a grotesque

disparity. >> tough times in braddock, no question. mayor, thank you and we appreciate you coming in this morning. >> thank you for the invitation. let's bring in the money panel. we have a managing editor of "financial times," and then our own christine romans is with us this morning. chris, you heard what the mayor had to say. is he the sort of person you think stimulus funds could help and be of some benefit to? >> yeah, i thought he was great. really clear about what the stimulus had done practically in his community. i loved his willingness to say, look, i have projects and i am able to bid. i thought his clothesing point about the wall street bailout was politically acute. i think the political problem

with the stimulus is not so much because it had an impact, because you just found a community where it had a concrete impact, it was the sense of justice and the feeling of maybe we are having our sore worked on, but we see trillions of dollars going to wall street. >> yeah, you cannot compare those two needs, right. my heart goes out to what they are going through. when you have a big recession, you lose a lot of revenues. >> they were losing before the recession? >> well, not just this recession. the problem is resulting in him having to raise taxes now in the middle of all of this. it's a nightmare.

that's not going to go away. even if there is a stimulus to help them through the patch, that problem is going to be there for years. >> two solutions you keep hearing about, is retrain for health care, although he is losing a big health care facility. hospitals are having a hard time making it through. the other thing is about green technologies, and you talk to economists, and they say it takes a generation to build that out. it's like going from stagecoaches to ltrains. >> he said they are at comfortably at 30% unemployment. >> yeah, the least comfortable at all, but has been the saving grace of the american economy is americans are incredible mobile, the most mobile people of any industrialized people, so they

have to move to where there are jobs. >> we want to come back and explore that further. stay with us.

we are back with our stimulus panel this morning. the problem for braddock and so many other towns goes well beyond what happened in the recession. a lot of their work went offshore, and the housing collapses. and some say we will have a u-shaped recession, and the stimulus bridge will get halfway across there. what do you do? >> people have to move out of braddock, is the sad thing. nobody is going to buy the house? >> well, it's a long term problem people are facing and the housing is a huge labor to

that mobility. >> if you step back, the housing project has been to 18 million people to 12 million people. that trend has little to do with the recession we just went through. that trend will not be cured by the stimulus. you have to retrain the people, and that's a compounding issue with moving out? >> we lost millions of jobs, and still 7 million jobs in the hole from the recession. when we talk about retraining i get nervous, because we retrain them for what exactly? >> well, i don't think at the beginning of the year anybody thought we were going to add 20 million jobs and going to have the longest expansion we have had. we will create a whole industry. >> development of the west, we had ghost towns. and hanging on as lovely as

braddock might be, trying to re-create the town and rejoov n. >> on the pointed of a long u-shaped recession. when we were in the recession, it went to minus six gdp, and now it will be in the 4% or 5% range. that is not a small thing. >> it could be a v and not a u. >> the employment track will be long. >> yeah, even unemployment. look at what is happening here. as bad as the numbers are, we are about to see jobs growth right here, right now. that's a couple courters after the recession ends. the last two recessions we

waited over a year and a half. >> just a quick point here because we have to leave it. final point. giving money directly to towns and municipalities instead of states? >> i think it's a good idea. one of the lessons of the stimulus is the closer you get to the actual jobs the more instant the impact? >> i don't know if governors will like it, but guys like governor braddic will like it. lots more to discuss on this topic. we'll see you again tomorrow. thank you so much. tomorrow on "american morning," can a resort restoration project be of good use of stimulus aid? and coming up at 8:00 on "campbell brown," in an exclusive interview the man obama picked to oversee the stimulus plan, his thoughts. and then "ac 360," why some say

the stimulus is being wasted on unnecessary road signs. kiran? >> it's 45 minutes past the hour. when we come back we will talk about the extreme weather we have seen lately, rain and high winds in many places, and the snow making for a travel nightmare. i work for a different insurance company. my auto policy's just getting a little too expensive. with progressive, you get the "name your price" option, so we build a policy to fit your budget. wow! the price gun. ♪ ah! wish we had this. we'd just tell people what to pay. yeah, we're the only ones that do. i love your insurance! bill? tom? hey! it's an office party! the freedom to name your price. only from progressive. call or click today.

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♪ 48 minutes past the hour. a look at new york city this morning, where right now it's 40 degrees, and going up to a high of 45 later today. meanwhile, rob marciano is in spring boat springs, colorado, and i am sure that's fun if you are a big ski fan? >> it's a dry cold. so it's 5 or 6 degrees, it's not so bad. the big politicians have their conference in switzerland, so now why not us here in steamboat. cold air and wind will slow down air travel. and also snow in the most part, light lake effect snows, too. and then another piece of energy

rolling into the west coast. we still have avalanche warnings up for parts of utah with this particular system. the cool air will slide down to the south. winter storm watch is up for parts of oklahoma and kansas and nebraska with the next system. and the mid-atlantic might see snow. and airports may see delays because of wind, and so will salt lake city and san francisco and los angeles. i got to talk to one guy about the climate change. there was a snafu in the past week or so where they said the glaciers will be gone, and that ended up being bad science. this is what he had to say about that. >> too much is riding on the fact that we get it right as

scientists. i know they got it right in the scientific literature, but put down wrong in the ipc report. that in itself is inexcusable. >> yeah, it's inexcusable and hurting the nobel prize winning company. >> reporter: we got to profile an olympian. five-time olympian, only one of three guys that has been able to do that, and he is going to compete in cross-country skiing and ski jumping. thae are adrenaline junkies for sure. we will air that report then. i am not a cross-country skier, as you can see, but we did our

best for television there. >> it's cross-country stomping, it looks like. >> reporter: that was sad. you can't be bothered with the cross-country stuff. you like the downhill stuff. >> reporter: yeah, that's right. stay with us. it's nine minutes to the top of the hour. cial can help. we have over ten-thousand advisors ready to listen to your dreams and help you plan for them. because the first step towards reaching what you want is reaching the person who can help you get there. our advisors. your dreams. more within reach. meet us at ameriprise.com.

welcome back to the most news in the morning. there is a desperate need for shelter in haiti. the u.n. estimates as much as a million people are homeless. >> and the president asked the

world for tents. sanjay, you have been there for a couple weeks and have seen things on the ground. what are the biggest challenges going forward? >> reporter: the medical challenges remain. you have people who have chronic conditions, heart disease, diabetes and lost their medications and are not getting care, and they can turn into big problems if not addressed. and you do have hundreds of thousands of people who are simply without homes. where exactly do you move them, and what are their lives like during this period of reconstruction? are they working? do they have access to medical care? what if hurricane season that starts in may as well, some of the areas that previously were affected by hurricanes, this is all part of the planning process. that's not to say anything about the need for nurses and rehabilitation doctors and

prothetics as well, and there were over 100,000 amputations possibly performed. >> one of the things we were talking about, sanjay, the overwhelming demand. the hospitals are being overwhelmed with patients, and some waiting for medical care. >> reporter: i think the critical patients are needing. there are more surgeries than needed, and i think it's interesting, a lot of people seen the images and have heard the stories and want to help, now they are not sure what to do with the doctors. they are creating mobile surgical units and sending them out of port-au-prince in some of the surrounding areas. the critical ill patients, they survive and got the care they

needed, or they didn't. two weeks is a critical period to see how the patients were treated. >> you mention amputees, and that's a society there in haiti that are labor intense, and a lot of things are done by hands, and there will be hundreds if not thousands of people missing one or more limbs. how are they supposed to go forwards? >> reporter: i don't know the answer to that, john. it's interesting, keeping in mind that we are talking about haiti, here. three weeks ago, before this earthquake occurred, the things you are talking about were not good. if somebody was disabled, their lives are terrible. they cannot work and cannot get around. nothing is wheelchair accessible. this is not a society that allows for people to have a disability like that to be able to function well. i think it will be worse in the short term. some estimates, up to 100,000 more amputees possibly in haiti and primary in port-au-prince.

i don't know. prosthetics is a big part of that. with the prosthesis, it's not a one time deal. have you to fit it several weeks after the operation is performed, and it has to be resized. are they going to develop the infrastructure to take care of the amputees long term? i don't know the answer to that. i think there is interest in that but we have to wait and see. >> yeah, think about it back here in the states. between all the physical rehabilitation that you go through, it's not just as easy as fitting a device. a lot of challenges that lie ahead. thank you so much, sanjay. it's two and a half minutes to the top of the hour. stay with us. well that's great. you haven't seen him... my other can is ringing. progresso. hey can you tell my wife to relax and enjoy the view? (announcer) progresso. you gotta taste this soup.

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